Thunderstruck - News Ltd shelves plans to sell Storm

Brad Walter

NEWS Ltd has shelved plans to sell the Melbourne Storm and will continue propping up the ailing club in the wake of the salary cap scandal that yesterday prompted three sponsors to withdraw $2 million in backing.

With the Storm playing their final home game at Etihad Stadium tomorrow night before shifting into Melbourne's new rectangular stadium in two weeks time, News has given undertakings to the Victorian Government that the club will be one of the venue's three major tenants for the next five years.

Those assurances are understood to have been reaffirmed to Victorian Sports minister James Merlino during a meeting yesterday at News Ltd's Holt Street headquarters in Surry Hills. To ensure the Storm's survival for that period, News Ltd had wanted a $30 million exit fee for handing over control of the game to an independent commission, which would be used to cover shortfalls by a new owner. Storm board member Gerry Ryan, whose company Jayco yesterday increased its level of sponsorship to help offset the loss of ME Bank and superannuation fund HOSTPLUS, has been mooted as a potential buyer. However, the crisis now facing the club has made the task of selling the Storm virtually impossible and News Ltd has committed to funding the club for the immediate future.

''The timing couldn't have been worse for a number of reasons,'' Melbourne chairman Rob Moodie said. ''We thought we had had great culture here, we have been proven wrong. We will have to go back to below zero, start again and there are many people who want to do that.

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''Some will probably want to walk as some fans will want to walk, we understand that. Some sponsors will want to move on, we understand that as well. This is not a good look, we acknowledge what has happened. We have to go back and rebuild.''

While major sponsors ME Bank, HOSTPLUS and fourth tier backer Skins yesterday withdrew their support for the club, Jayco and Suzuki have taken up the slack and their names will now appear on the Storm's jersey in tomorrow night's game. Moodie admitted the scandal had the potential to destroy the club but he said News Ltd was committed to ensuring the Storm survived.

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''There is a possibility that the club might fold but we have strong support from News Ltd who wants to keep rugby league alive and well in Victoria and has indicated they will help the Storm rebuild. We certainly hope that we have cut the cancer out and we want to help the game grow. Rugby league has and important part to play in Victoria and we know the government feels that way as well.''

After founding the Storm during the Super League war, News Ltd would not want its legacy to be the death of the club when it exits the game at the end of the season - a result that would have impact badly on the size of the next television deal if league had no presence in Melbourne.

Such a result would be a double blow to the code as it would coincide with the introduction of the Melbourne Rebels Super rugby franchise.

''We certainly believe in having a team in Melbourne and we will do to help them get back on track,'' NRL chief executive David Gallop said. ''Their owners [News Ltd] have indicated that they are committed to them.''